QUESTIONS & ANSWERS
AM I REQUIRED TO ACCEPT THE ADJUSTER’S REPAIR ESTIMATE?
No. If you disagree with the adjuster’s repair estimate, you have the right to obtain your own repair estimate. Or you can submit additional information to the adjuster for his or her consideration. However, don’t forget the 60-day deadline for filing the Proof of Loss for federal flood claims.
That's one of the perks of hiring an attorney! Public adjusters and engineers cost money; after you get the initial payout, that's a good time to consider lawyering up. Unlike some law firms, Baer Law only takes a percentage of NEW money (not on money received before hiring them). Some other law firms take a percentage of everything, not just new money.
WHAT IS MY DEDUCTIBLE?
In the wake of Hurricane Katrina, insurers increased the deductible for wind and hail claims from one to five percent. In many cases, this means that there must be substantial damage to the property for the claim to be worthwhile. For example, if you have a $500,000 policy, the deductible is $25,000, which means that there must be substantial damage to the property to receive any payment from the insurer.
WHAT IS PRE-EXISTING DAMAGE?
In a hurricane-prone or other disaster-prone area, the property may have been damaged by a previous event that the owner has not yet fixed or only temporarily fixed. Insurers often try to blame damage on this previous event or the property owner’s failure to mitigate damages by fixing previous damage.
** google earth photos may help you
WHAT IS ACTUAL COST VALUE VERSUS REPLACEMENT COST VALUE POLICIES?
Actual cost value (ACV) policies replace only the value of the property, whereas replacement cost value (RCV) policies pay for replacement of the property, regardless of its condition. If a property is older and not well maintained, the case would have a higher value with an RCV policy as opposed to an ACV policy.
WHAT DOCUMENTS ARE RECOMMENDED AND NECESSARY?
Take multiple photographs of the damage to the property, especially before any clean-up or repair work is done. If possible, have these photographs time-stamped to show that they were taken soon after the event, and not before or years after. Pictures taken with mobile phones will likely include the date and time in the property data.
Communicate with the insurer via letter or email so there is a paper trail. Most insurers will have an activity log on an insured’s claim, which will include a phone log of when the insured calls.
Keep receipts to prove damages to the property.
If you are disputing the amount an insurer paid you, the insurer will require some sort of “proof of claim,” which varies depending on the type of insurance claim. An estimate for property damage will be required, along with some proof of lost contents. Again, receipts are ideal.
SHOULD I MAKE TEMPORARY REPAIRS?
It is best if NO repairs are made before the adjuster inspects the property. However, you are required to mitigate your damages. This means that you are required to protect your property and to minimize the damages. If you throw away any damaged personal property or make any repairs or demolish any part of the structure before it is inspected by the adjuster, you should make sure that you have documented everything, and pictures will be especially helpful to do this.
Remediation and hazardous mitigation companies help you fix your property and mitigate your damages—which is something your insurance company likely will require you to do. Our firm is works with local companies that may be able to help mitigate your damages.
Take pictures not just of stuff, but also of anything like serial numbers, make and model, etc. for personal property/contents.
For structure/building claims, get as many pictures as you can every step of the way.
WHAT IS WIND DAMAGE VS HAIL DAMAGE VS FLOOD DAMAGE?
Flood policies are separate and apart from wind and hail policies, which bring up the following issues:
National Flood Insurance Program Policies -- many flood-prone areas can only get flood insurance through NFIP, which severely caps policies, limiting the amount a homeowner can receive.
Proving Wind versus Hail -- Because the policies are separate, after Hurricane Katrina, many insurers claimed that damage was caused by whatever policy an insured did not have. In a huge event like Katrina, it was difficult to tell the source of the damage.
Potential wind damage always precedes the potential of flood damage. In other words, there will always be substantial wind forces before any flooding occurs. This does not mean that the winds necessarily cause much damage, but the risk of wind-related damage always precedes the risk of flood-related damage.
It must be kept in mind that the windstorm does not stop once the flooding begins. Throughout the flooding of the structure, the windstorm is still presenting the risk of damage to the structure.
Although it is common for adjusters to identify the high-water line from flooding, which seems to be always identifiable in the structure, and blame flood for all of the damage at or below the high-water line and wind for the damage above the high-water line. It is not that simple. Certainly, there could have been windstorm caused damage below what turned out to be the high-water line before the flooding ever began. Also, flooding can cause damage to the structure even above what turns out to be the high-water line.
Many of the cases hinge on expert testimony from meteorologists, engineers, contractors, and private adjusters. The meteorologist can report on exactly what the wind speeds were at the location of the structure and how long wind speed was excessive and can also state approximately when the flooding would have begun. The engineer can take the information from the meteorologist and, based on the nature of the structure, give an opinion about what windstorm damage would have occurred to the structure before the flooding ever got to the structure, and then can discuss what windstorm damage would have continued while the flooding was occurring. He or she can also talk about the damage that would have been caused by flooding. Another expert to consider is the contractor who can give an opinion about whether or not the house is even repairable and, if it is repairable, what the cost would be. Also, a contractor can discuss whether it would be cheaper to tear the house down and rebuild it, up to code, if necessary, as opposed to trying to repair the house up to code. Understanding the building codes is critical for anyone giving you repair estimates, so beware of out-of-town contractors.